Agel Langgeng Closes Candy Factory in East Java

factory workers
Summary

Kapal Api Global, known for its Kapal Api Coffee product, closed one of the factories in Pasuruan, East Java, which was owned by subsidiary PT Agel Langgeng, PT Agel Langgeng's lawyer Atmari said the decision was taken following the company's continuous losses since 2019. The company also laid off 273 employees as an efficiency measure.

"The layoff was taken in line with the existing regulation," Atmari said on Wednesday. The closed factory produced hard-boiled candy, soft candy, compressed tablets, cookies, and other foods under various brands like Oarbits, Oat8, Hi-Cal, Bontea Green, Kapal Api Coffee Candy, Gingerbon, Espresso, and Lovy.

Atmari said that to date, 123 employees had decided to receive severance payments and accepted the layoff decision. While the other 150 employees had expressed disapproval and refused the severance packages. Currently, the refusal is in the process of mediation. "The mediating process is underway," he said.

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